The Voice - Student Newspaper

CLEARANCE! Economy closes businesses, leaves behind concerned holiday shoppers

By Kavitha Sundralingham
Freelance Reporter, The VOICE

The economic downturn is not only causing people to lose their jobs- major corporations are at risk as well. This holiday season, more stores are having closeout sales instead of blowout sales.

Circuit City, an electronic company that is closing down 155 stores nation-wide. Browse your neighborhood Circuit City might put you in for a surprise. Everything is on sale- CDs, DVDs, and various electronics are 30-50 percent off and almost everything in the store is at a reduced price.

The consumer retailer filed Chapter 11 bankruptcy and will close 20 percent of its stores. Circuit City is also reducing future store openings.

Linens 'N' Things are closing down all their stores, Foot Locker reducing by 140 stores, The Home Depot is closing 15, the Disney stores reducing by 98, GAP closed 85, Macy's closing 9 stores, and many other retail stores are eliminating their many branches.

These major retailers are losing their target consumers because at times like these, everyone is penny-pinching one way or another.

With all these retail stores busting out their clearance signs, more people are getting their holiday shopping done faster this year. However, people are reminded not to purchase gift cards at these various retailers that are planning on closing down by the end of this year.

Residents are hoping that the major retailers near their neighborhood would not close down. The West Valley, especially in Goodyear, is introducing more developments- mainly shopping destinations- and they are aiming big.

Estrella Falls Marketplace is planning on opening outlets like Old Navy, PETCO, and the Power Center soon to arrive in 2010.

The mall is expecting a Macy's, Dillard's and Harkins Theatres. Several developers across Arizona are planning on launching major retailers and might struggle with the sluggish economy.

Cities across Phoenix have many business and developmental plans consisting of introducing new retailers to various neighborhoods.

However, plans might have to change for them at this state of the economy. Companies are struggling with growth and expansion when their employees are losing their jobs.

People are left wondering what else can happen, with the bad economy, thousands of people losing their jobs, developments slowing their expansions and major retailers closing down.